For Sellers - A Great Exit Strategy

If  foreclosure is something you are facing,  there are other options available to you as a homeowner where you can maintain dignity, avoid foreclosure, and preserve your credit (a short sale is a two year hit as opposed to a 7 year foreclosure credit hit).   Also, you are not alone.  Most homes for sale in Sacramento County and surrounding are presently either bank owned for short sales. 

 

What is a short sale? 

A process where you are selling your home "short" of what is owed.  The term "short" does not refer to the length of the process.  It is by no means short.  The bank must approve the sale by evaluating your taxes, bank statements, paycheck stubs, hardship letter, market value of your home, and purchase price.  This process, and it is unique from lender to lender, can take 2 months to 6 months.

 

Can I live in my home during a short sale?

Yes, you can continue to live in your home during the listing process.  The listing / sale period is similar to a normal listing of your home.

 

Do I have to pay a Real Estate Professional to sell my home?

No.   Your lender pays for the entire cost of selling your home, and it will compensate each real estate professional involved in the transaction.  The lender even pays for closing costs.  You are not REQUIRED to pay any money to sell your home.

 

 

 

For Buyers:  Bank Owned Price, Usually Well-Maintianed

 

Why would I buy a Short Sale?

Sometimes, especially the way the bank owned home market has heated up, home buyers (believe it or not) are getting "outbid" on homes, first day on market.  Short Sales offer buyers an opportunity to buy a well-maintained home at bank owned values.    In the greater picture, you are helping the overall market stabilize values by holding off an eminent foreclosure find its way to the market.  Hence, turning the upside down house, right side up..

 

If I Need To Move in Quick, Is a Short Sale Right for Me?

No.  The process is not short - time wise.  It can take 30 days to 4 months, maybe longer if the lender is especially slow reviewing the sale.

 

Do I Need To Deposit Money in Escrow Right Away?

No.  You do not deposit money in escrow or begin your inspections until the Short Payoff Lender has approved "in-writing" the sale.

Both Buyers and Sellers:  Only use a real estate professional who has experience with the short sale process.  Using a professional with little experience with the process, will likely result in wasted effort.   The process and amount of paperwork required  is extensive, and the professional needs to be diligent in his/her efforts with the bank, as they are overwhelmed with short sale requests and loan modifications right now.